Quest for My First Million

I love my money! Most people do, but I'm amazed at how taboo the subject seems. It seems like money is dirtier then sex when it comes to conversations. The only way to learn about something is by doing it. People seem so afraid to talk about what they are doing with their money, it doesn't surprise me at all how poorly they are with it. I've made a number of mistakes already that could have been avoided. This Blog is in it's infancy, but I've got no problem being open with what I'm doing with my money to either help somebody from making a mistake I made or on the receiving end of getting some recommendations.

It's always been my goal to have a million dollars saved by the time I'm 50 (hopefully even more). Lofty goal, maybe, but with the erosion of the value of the dollar recently, it really shouldn't be that difficult goal to achieve. It's almost too depressing to think about how inflation is going to really change my dream of being a Millionaire. I'm going to pretend in the 2020's, when I turn 50, that a million dollars will still be a lot of money.

Looking at my accounts today, I just hit a milestone.

With my 401(k), Roth IRA, various investments, and saving accounts I just passed $200K. Not bad, especially considering I just got back from a week in Maui, or is it? I've been in the work force for ten years. Where should I be assuming thirty years of work until I'm 50? It doesn't take a rocket scientist to see how far behind I am. A linear climb to a million says I should have $333K by now. That's probably a unrealistic path to attempt to keep pace with, but being $133K behind that path doesn't cause a warm and fuzzy feeling to pass over me either.

I seriously don't know how it will be even possible to save $800K in the next twenty years. Somehow in the next 10 years, I'm going to have to double what I saved this past decade. Warren Buffett sounds pessimistic that the stock market will continue at it's 8-9% historic average increase. I happen to agree with him, I don't see how it can continue at that pace with all the economic problems looming on the horizon. When setting the Million at 50 goal, I know I assumed the 8-9% historic average for the market. Even that seems optimistic now.

Besides winning the lotto, I don't see how I'm going to accomplish my goal at this point, but I'm going to keep working on it.

Here's a link to one of my favorite money blogs. The guy that writes it does an awesome job not only with it, but finding very interesting information dealing with all kinds of money issues. I highly recommend not only taking a peak at it.

Money Magazine ran this article that I found interesting, The only 7 investments you need. I'm still in the process of brewing over it, but I like the fact that I own most of the funds they recommend. I must be doing something right, but it still doesn't explain why I'm falling so far short with my goal!